R&D tax credits are complex and reports that HMRC is trying to clawback incorrectly claimed funding doesn’t help. One accountancy firm has estimated that the clawback could be as high as £612 million. HMRC have described these claims as ‘tax under consideration’.
The generous tax benefit is designed to help support businesses that are investing in developing and innovating and is worth more than £4.3 billion. But getting the claim right is essential in ensuring that you receive the benefit and that you get as much as you are entitled to.
What is going wrong?
HMRC has a tough stance on the misuse of tax benefits and those over-claiming benefits. Greater scrutiny has come on R&D tax credit claims as the number of claims has increased over recent years.
The information about R&D tax credits is not straight forward and is a specialist area as many accountants find the technical side of the claims difficult. The interpretation of what can be claimed is often seen by both businesses and accountants as a grey area and can result in inaccurate/incorrect claims being made, which can leave the scheme open to abuse or claimants unknowingly making mistakes.
Don’t let this put you off
Given the complexity of the scheme and the reporting of HMRC making clawbacks on incorrect claims, it might seem like too much hassle and hard work to make a claim. But this would be short-sighted as the average claim for SMEs is £64,562 and £315,789 for large businesses per year based on 2017-18 figures. You can claim for previous years as well so the figures for first-time claimants can be high.
Could you be missing out?
It has been estimated that only 20% of eligible companies make R&D tax credit claims. So, that is a lot of businesses missing out on this valuable tax benefit.
To be eligible for R&D tax credits you need to be trying to achieve something that is seen as technically challenging or innovative within your industry. You will also need to demonstrate that advancement in science or technology has been made which benefits more than just your own company. This description is broad and can be open to interpretation and therefore it is worth exploring your eligibility with a professional. Many businesses can claim even though they don’t think they are eligible as you can see in one of our previous blogs.
What we can offer
At TEQ Group we have worked with a broad range of businesses of all sizes and shapes across a variety of industries to help them make successful R&D tax credit claims. It is one of our core services and we have technical specialists that are highly experienced in finding eligible claims and making the claim process hassle-free as we will manage everything for you. We also have a 100% success rate on our claims.
We are so confident that we can achieve a successful claim that we offer our services at no upfront costs and we will only take a fee once your claim has been paid. There really is nothing to lose in contacting us for a free, no-obligation assessment. To find out more contact TEQ Group today on 01423 815299 or click the button below and we’ll be happy to offer some advice.
Contact TEQ Group